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Why is MSTY Up Today After Bitcoin Acquisitions

The Tidal Trust II YieldMax MSTR Option Income Strategy ETF (MSTY) closed up 1.79% at $28.92 on January 16, 2025, as MicroStrategy's strategic maneuvers in the Bitcoin market captured investor attention. MicroStrategy (MSTR) has been actively increasing its Bitcoin holdings, recently adding 2,530 units valued at approximately $243 million, bringing its total to over 450,000 units. This aggressive acquisition strategy is primarily funded through common stock sales, reflecting the company's commitment to its Bitcoin-centric business model. Despite a 15% dip in MSTR's stock price, analysts remain bullish, with Cantor Fitzgerald raising its price target, indicating confidence in MicroStrategy's growth prospects. The company's plan to expand authorized shares from 330 million to 10.33 billion to fund further Bitcoin purchases is expected to be approved by shareholders, ensuring the continuation of its current business model.